RANJAN (C.A.) (102 Points)
21 April 2021Hello,
Assessee purchased property from NRI with below details:
Agreement Date: 31/03/2021
Registration date: 16/04/2021
Advance Payment of Rs.2 Lacs: 01/03/2021
Balance Payment: Yet to be released
Question: TDS u/s 195 to be deducted in which Financial Year & on what amount?
Zeal Bangdiwala
(Partner at N. Gamadia & Co.)
(363 Points)
Replied 21 April 2021
As the agreement has been entered into the TDS needs to be deducted on 31.03.2021 on the full value of consideration.
RANJAN
(C.A.)
(102 Points)
Replied 21 April 2021
Thanks for the quick reply. I have one more question, the said transaction will be reported in AIR by IGR in FY 2020-21 or FY 2021-22 since the agreement is registered in FY 2021-22
Zeal Bangdiwala
(Partner at N. Gamadia & Co.)
(363 Points)
Replied 21 April 2021
I think it will be the registered year that is FY 21-22. Also you have to claim the capital gain or loss in FY 21-22
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 22 April 2021
RANJAN
(C.A.)
(102 Points)
Replied 22 April 2021
So basically if the seller has to apply for lower deduction, it has to be for FY 2020-21 or FY 2021-22?
Zeal Bangdiwala
(Partner at N. Gamadia & Co.)
(363 Points)
Replied 22 April 2021
When the Agreement is registered in April 2021 then it will fall in FY 21-22.also in income tax under the AIR transaction it will appear in FY 21-22 so to avoid unnecessary litigation advisable to offer gain in FY 21-22. Further Seller won't be able to apply for Lower TDS for FY 20-21 as the year is already over.
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